“Defendants have no license or other authorization to use
the inventions” and owe damages, Neste said in a complaint
filed yesterday in federal court in Wilmington, Delaware, the
same day the patent was issued. The Espoo, Finland-based company
has invested 1.5 billion euros ($1.86 billion) in diesel
production, according to a statement.

“Syntroleum has not infringed any of Neste’s alleged
patent rights and Syntroleum intends vigorously to defend
against the complaint’s allegations, and is confident that its
position will be vindicated,” the company said in a statement.

Gary Mickelson, a spokesman for Tyson, deferred comment to
Syntroleum.

The case is Neste Oil Oyj v. Dynamic Fuels LLC, 12-cv-662,
U.S. District Court, District of Delaware (Wilmington).

EU Ministers Fail to Agree on Location of Patent Court

Danish Business Minister Ole Sohn said European Union
ministers couldn’t decide in talks yesterday on the location of
a European Union patent court, the last obstacle toward agreeing
on an EU-wide patent system.

EU leaders will try to strike a deal at talks next month,
he told reporters yesterday.

For more patent news, click here.

Trademark

Marzetti’s ‘Texas Toast’ Not a Protectable Trademark, Court Says

T. Marzetti Co., a food company based in Columbus, Ohio,
lost a trademark challenge against competitor Roskam Baking Co.
of Grand Rapids, Michigan.

A federal appeals court rejected Marzetti’s claim of
trademark infringement related to Roskam’s use of the term
“Texas Toast” in connection with packaged croutons.

Marzetti had sought to register “Texas Toast” and “The
Original Texas Toast” with the U.S. Patent and Trademark
Office, according to the May 25 opinion from the 6th U.S.
Circuit Court of Appeals in Cincinnati. Although the patent
office originally denied both applications, it withdrew its
opposition in November 2009. Marzetti had filed the trademark-infringement suit in federal court in Columbus in July 2009.

The trial court said that the term “Texas Toast” was
generic with reference to croutons. Marzetti then filed its
appeal. Roskam filed what are known as “oppositions” to the
issuance of these marks with the patent office in 2010.

The appeals court said a consumer-awareness survey
conducted by Marzetti found that a relevant consumers didn’t
identify “Texas Toast” as a brand of croutons. The fact that
Marzetti itself referred to Texas toast croutons as a type of
product in its annual report instead of a brand also influenced
the appeals court.

It agreed with the trial court that “Texas Toast” is
generic for some bread products, including sliced bread, frozen
garlic bread and croutons.

Raids at South Carolina Beach Festival Net $500,000 of Fake
Goods

More than $500,000 worth of counterfeit goods were seized
from vendors at a South Carolina festival over the Memorial Day
weekend, the Carolina Live website reported.

Among the companies whose marks appeared on allegedly fake
products were Burberry Group Plc, Coach Inc., Nike Inc., Chanel
SA, and Jimmy Choo Ltd., according to Carolina Live.

Vendors at the state’s Atlantic Beach Bike Fest had been
required to sign an agreement barring the sale of counterfeit
goods, Carolina Live reported.

South Carolina Secretary of State Mark Hammond told
Carolina Live he encourages customers to question
“inappropriate pricing or markings” on so-called “designer”
items.

For more trademark news, click here.

Copyright

ABC Urges Judge to Shut Down Aereo Over Copyright Violations

Broadcasters including Walt Disney Co.’s ABC told a judge
the Barry Diller-backed online television service Aereo Inc.
should be shut down because it lets users view programs through
the Web in violation of copyrights.

The networks sued New York-based Aereo in March, saying
that it hadn’t paid to offer their programming through the
Internet service, which was set to begin that month. Aero
collects over-the-air signals that subscribers can tap from a
video recorder for $12 a month. The broadcasters said Aereo
could reduce their advertising revenue.

Aereo, during opening statements yesterday in Manhattan
before U.S. District Judge Alison Nathan, countered that
consumers have a right to watch TV shows using an antenna
without infringing copyrights.

“Aereo is taking the plaintiffs’ broadcast signals and
reprocessing them so they can be streamed over the Internet,”
Steven Fabrizio, a lawyer for the networks, told the judge.
“That is a violation of copyright law.”

The broadcast networks also argued that Aereo, by
transmitting programs live, is engaging in a public performance,
which under copyright law requires a license.

“What the consumer is doing is playing back one unique
copy solely to himself,” John Englander, a lawyer for Aereo,
told the judge. “This is a quintessentially private
performance.”

The broadcasters said Aereo could reduce their revenue
because its audience wouldn’t be measured for ratings. Companies
such as ABC and CBS Corp. charge advertisers rates based on the
number of viewers who watch the programs where the ads appear.
Nielsen Media Research measures the number of viewers.

Aereo said in February that Diller’s digital media company,
IAC/InterActive Corp., led a $20.5 million round of financing
for the company. Diller, who is on Aereo’s board, once ran News
Corp.’s Fox Broadcasting Co.

Chet Kanojia is the founder and chief executive officer of
Aereo. He is also chairman of Navic Systems Inc., a provider of
computer-programming services based in Waltham, Massachusetts.
He is scheduled to testify in the trial.

The cases are American Broadcasting Cos. v. Aereo Inc., 12-1540, and WNET v. Aereo, 12-1543, U.S. District Court, Southern
District of New York (Manhattan).

Ivi Asks Appeals Judges to Overturn Web TV Service Shutdown

Ivi Inc., the online company that streamed television
programs to subscribers without the authorization of the
broadcasters, argued in an appeals court for a reversal of a
ruling that shut its service.

Ivi, based in Seattle, and its founder, Todd Weaver,
appealed a February 2011 decision by U.S. District Judge Naomi
Buchwald in New York granting CBS Corp. and Walt Disney Co.’s
ABC a preliminary injunction that stopped Ivi from
retransmitting the broadcasts of their programs on the Internet.

Ivi’s lawyer Lawrence Graham told the appeals court in
Manhattan yesterday that its broadcasts were similar to those of
cable TV systems, so the company should be eligible for a
license. Ivi “receives primary signals and passes them over as
a secondary transmission,” which defines a cable system, Graham
said.

“The Internet is not a cable system,” Robert Garrett, a
lawyer for the networks, told the judges. “Anyone with a
television set and an Internet connection could become a cable
system.”

In the lower-court ruling, Buchwald said the broadcasters
had “demonstrated a likelihood of success on the merits of
their copyright claim.” The appeals judges are to rule later.

The appeal is WPIX v. Ivi, 11-788, 2nd U.S. Circuit Court
of Appeals (Manhattan). The lower-court case is WPIX v. Ivi
Inc., 10-07415, U.S. District Court, Southern District of New
York (Manhattan).

For more copyright news, click here.

Trade Secrets/Industrial Espionage

Posco Says Nippon Steel Trade Secret Complaint Hasn’t Arrived

Posco, the South Korea manufacturer of hot rolled steel,
has yet to be served with court papers in Nippon Steel Corp.’s
trade-secrets case.

In a May 25 regulatory filing, the Gyeongbuk, Korea-based
company said that while it has read Nippon Steel’s press
statement about the suit, it may take as long as six months to
receive the relevant court filing. That’s because complaints
filed in a foreign country are delivered to relevant parties
through the foreign affairs ministries of each country, which
can be a lengthy process, Posco said.

As soon as it officially receives the complaint from the
Japanese court, Posco said it will “promptly disclose material
information with regard to the lawsuit.’

Nippon Steel filed the suit in Tokyo District Court in
April, seeking 100 billion yen ($1.2 billion), saying its trade
secrets were being used by the Korean company. The Japanese
company is seeking an order against Posco’s high-end electrical
steel products, according to a Nippon Steel statement.